1. btX Event October 22, 2009 2:00 PM EDT, 11:00 AM PDT, 7:00 PM GMT
Global Advisory Services eXpert insights Research Practice Global Business Travel Forecast
btX Event
October 22, 2009
2:00 PM EDT, 11:00 AM PDT, 7:00 PM GMT

2. Agenda Current Drivers Influencing 2010 Trends Overall 2010 Trends
Global Overview
[North America Overview
Latin America Overview
Europe Overview
Asia Pacific Overview]*
Managing Travel in a Downturn and Back
Guiding Principles for T&E Optimization
ROI Approach to Savings
Q&A
* These slides removed, data available with purchase of full forecast

3. Today’s Presenters Frank Schnur
Vice President, Global Advisory Services, Innovation
Christa Manning
Director, eXpert insights, Research Practice, Global Advisory Services
Joakim Johansson
Vice President, Global Advisory Services, Europe, Middle-East and Africa
Thelma De la Peńa
Vice President / General Manager, Latin American

4. Current Drivers Influencing 2010 Trends
The Global Recession Has Had A Profound Impact on the Business Travel Industry; Likely Resulting in Irreversible Change
Buyers forced to find ways to reduce cost of travel
Reduce number of business trips; seek alternate ways to travel/connect
Change traveler behavior; trade-down class of service for air and hotel
Emphasize demand management, policy and compliance
Suppliers look for new ways to capture lost revenue with a decrease in demand
Airlines remove capacity; continue to charge new fees
Hotels look for new strategies to attract business; begin charging new fees for services

5. Overall 2010 Trends Trends Influencing Pricing
Economic pressures will continue to influence travel budgets
Travel growth is expected to return in many regions
Suppliers will try to swing the pendulum back in their favor
Bottom-line: Slight economic recovery in 2010 promises relatively small increases in travel categories
Trends Influencing Behavior
Corporations armed with new appreciation for return on investment
Demonstrating value of all travel and meetings take front seat
Understanding why travel is necessary, determining which form of meeting is most appropriate and at the right cost gains attention
Bottom-line: Smart companies get serious about building an end to-end travel program and optimize business results

6. Global Pricing Trends 2010 0% to 5 % 1% to 6% -3% to 2% -4% to 1%
Domestic/Short-haul Economy Fares
International/Long-haul Business Fares
0% to 5 %
1% to 6%
Hotel Mid-Range Properties
Hotel Upper-Range Properties
-3% to 2%
-4% to 1%
Car Rental Rates
-1% to 2%

7. Managing T&E in a Downturn and Back
Declining Revenues
Cut Spend 30%
Revenues Return & Grow
Revenues
Spend increases because behaviors remain unchanged:
Wide policy parameters don’t promote best practices
Sub-optimal advance purchase
Non-preferred supplier usage
Non-compliance to booking channel
Indirect Spend
T&E

8. Guiding Principles for T&E Program Optimization
Sourcing Savvy: Break the model, not the budget
Transform the Model: Challenge the status quo
Empower the Traveler: Guarantee productivity
Precision and Control: Be exact, close is insufficient
Service Excellence: Drive savings without sacrifice

9. The ROI Approach to Savings
Approach: Reduce the cost of travel through further refinement of price and driving the ROI of travel.
Right Reason
Right Price
Right Way
Develop ROI focused policy
Identify and track revenue generating vs. non-revenue generating travel
Focus on travel reason and optimize internal meetings.
Transition non-critical meetings to travel alternatives
Partner with suppliers through strategic sourcing
Consolidate spend with point of sale technologies
Leverage benchmarking to drive best in class rates
Engage subject matter expertise to identify difficult to find savings opportunity
Drive best in class usage of online travel reservations
Use pre-trip notification technology to drive compliance
Maximize preferred negotiated rates using point of sale technology
Change traveler behavior to take advantage of discounted fares
Strategic Savings
Negotiated Savings
Demand Savings
Revenue
Possibility of a 16% reduction in overall program spend